Brazilian government sees economy expanding through 2014

Sao Paulo, Feb 14 (IANS/EFE) Latin America’s largest economy will grow 4.5 percent this year, 5.5 percent next year and 6 percent in 2014, the Brazilian finance ministry said Monday.

Brazil’s gross domestic product likely grew by 3.2 percent in 2011, the ministry said in a preliminary estimate based on data for January-September.

The government’s official GDP figure for last year is due March 6.

“The year 2011 was important to consolidate the trajectory of long-term growth in an international environment of clear deceleration,” the ministry said in a report that projects average annual GDP expansion of 4.8 percent over the next three years, compared with 4.6 percent in 2009-11.

“After the adjustment in 2011, the Brazilian economy will accelerate. With investments in both the private and public sectors, the median GDP expansion through 2014 should be superior to that of the four previous years,” according to the report.

Increases in investment have outpaced GDP growth every year since 2004 except for 2009, when Brazil endured a brief but sharp recession spurred by the global financial crisis, the finance ministry said.

The document forecasts a 10.8 percent jump in investment this year, due partly to the extensive infrastructure projects underway as Brazil prepares to host the 2014 soccer World Cup.

Most of the 33 billion reais ($19.24 billion) in World Cup-related spending will go toward upgrading transportation, the ministry said.

Brazil’s inflation rate will rise to 4.7 percent in 2013, the report said, citing calculations by the Central Bank.